Essay questions on market failure: externalities
Evaluate the possible benefits of introducing a tradeable pollution permit scheme.
Evaluate the microeconomic benefits of increased spending on education.
Evaluate the likely impact of imposing indirect taxes on aeroplane flights to reduce carbon emissions. Include at least one relevant diagram in your answer.
Evaluate possible microeconomic reasons why education might be underconsumed.
Evaluate the use of tradeable pollution permits to reduce pollution.
Evaluate the private benefits and external benefits of children receiving the measles vaccination.
Evaluate why only 18.3% of adults were vaccinated.
Data response questions on market failure: externalities
Case study: Container shipping
With reference to Extract C, examine two external costs associated with container ships.
Case study: The cocoa market
With reference to Extract B, discuss the likely external costs associated with cocoa production. Illustrate your answer with an externalities diagram.
Case study: The market for rice
With reference to Extract B, examine two external costs associated with rice production.
Case study: The markets for chicken and 'junk food'
With reference to the second and third paragraphs of Extract A, examine two external costs associated with chicken production.
Case study: The market for fertiliser
Define the term 'tradeable pollution permit scheme'. (Extract B, line 16)
Case study: The market for fertiliser
With reference to Extract B, discuss the external costs associated with the production and the use of fertiliser. Illustrate your answer with an appropriate diagram.
Case study: Renewables, lithium and smartphones
With reference to Extract C, discuss the microeconomic effects of the increase in smartphone manufacturing between 2011 and 2021. Refer to external costs in your answer. Illustrate your answer with an externalities diagram.
Case study: The semiconductor market
Define the term 'external costs' (Extract C, line 11).
Case study: The markets for copper, electricity and battery electric buses (BEBs)
Define the term 'external costs' (Extract B, line 3).
Case study: The markets for copper, electricity and battery electric buses (BEBs)
With reference to Extract B and your own knowledge, discuss the possible effects of a subsidy paid to manufacturers of battery electric buses (BEBs). Illustrate your answer with an appropriate diagram.
Case study: Cotton and clothing
With reference to Extract B, examine two external costs associated with the production of clothing.
Case study: The markets for rubber, tyres (tires) and rubber gloves
With reference to Extract B, discuss the external costs associated with tyre production and consumption.
Case study: The global market for palm oil
With reference to Extract B, discuss the externalities associated with the production of palm oil. Illustrate your answer with an appropriate diagram.
Case study: The market for plastics
With reference to Extract B, examine the external costs associated with the consumption and disposal of plastic bags.
Case study: The market for meat
With reference to Extract B, examine the external costs resulting from increased meat production.
Case study: The market for cocoa
With reference to Extract B, examine the external costs associated with the production of cocoa beans.
Short answer questions on market failure: externalities
Draw a diagram to illustrate the likely external benefits resulting from online education in the Philippines.
Draw a diagram to illustrate these external benefits.
Explain one microeconomic reason why people might have unnecessary operations in the USA.
With reference to health insurance, explain what is meant by 'moral hazard'.
With reference to the information provided, explain the difference between private benefits and external benefits.
Explain one microeconomic reason why the Singapore Government provides streetlights.
Draw an externalities diagram to illustrate the underconsumption of vaccinations.
With reference to the table, explain what is meant by 'external costs of production'.
With reference to the provision of street lights, explain what is meant by the term 'public good'.
Multiple choice questions
- AS Unit 1, October 2024, Q4
Which one of the following shows the area of welfare loss?
- AS Unit 1, June 2024, Q2
Which one of the following is the likely result of supplying this number of permits?
- AS Unit 1, January 2022, Q5
Which one of the following is the most likely reason for the increase in the price of carbon permits?
- AS Unit 1, October 2021, Q1
1 Which one of the following is a role of the government in a mixed economy?
- AS Unit 1, October 2020, Q1
1 Which one of the following is a role of the government in a mixed economy?
- AS Unit 1, October 2019, Q2
2 Which one of the following roles is the state most likely to undertake in a mixed economy?
- AS Unit 1, June 2019, Q2
2 The Chinese Government introduced a carbon emissions trading scheme. The objective of this tradeable pollution permit scheme is to reduce carbon emissions by
